News

International Industries Limited (IIL) has been qualified by Underwriter Laboratories (UL) for ERW & Galvanized (ASTM 795) Pipe in sizes ranges from ½” to 12”.

UL is the largest and best known testing laboratory in the world and its standards and certification are universally recognized as important indicators of product safety and reliability.

In an industry where quality standards of the products are of critical importance to the customers, the acquisition of this certification provides IIL with a strong platform to enhance the appeal of its ERW and Galvanized Pipes in the domestic and international market.

IIL has ambitious plans for the future and is committed to grow sustainably. This certification confirms IIL’s comprehensive commitment to quality.

The assigned ratings incorporate the company’s position as the largest tube and pipe manufacturer in the country. Moreover, the extensive experience and track record of the sponsors in the steel sector is also a key rating driver. Ratings also reflect stable and improving financial profile of IIL and strong corporate governance framework.

Going forward, organic growth in traditional products along with sales from commissioning of Stainless Steel & large diameter steel pipe mill and Pakistan’s largest HDPE pipe extruder are expected to be the growth drivers for revenues. Moreover, current low per capita steel consumption, favorable demand outlook from industries (autos, construction and pipelines) catered to by IIL is expected to contribute positively to sales. IIL’s gross margins witnessed improvement during FY16 on account of inventory gains translating into higher profitability. With raw materials representing the major cost component and significant volatility in prices, efficient procurement, inventory management and volumetric off-take are critical to gross margins. Profitability of IIL is supported by increase in dividend income from subsidiary ISL which is expected to continue to expand and grow.

IIL is Pakistan’s largest manufacturer of steel and plastic pipe with an annual pipe manufacturing capacity of 500,000 tons. Sales mix of IIL is diversified in terms of local and export sales and comprises multiple products from two segments (steel and plastic). Local sales witnessed growth during FY16 and represent the major portion of company’s sales. Over the last five years, export sales (in volumetric terms) have ranged between 30%-40% with the company exporting to 60 countries across five continents.

As a sponsor of the annual newsletter issued by the Pakistan Australia Business Forum (PABF), IIL was invited to showcase its products at the annual PABF dinner on 12th January 2016 held at Movenpick Hotel in Karachi.

The event was inaugurated by Miss. Margaret Adamson of Australian High Commissioner, Pakistan & Patron-in-Chief of PABF. She highlighted PABF’s role as a platform where Australian and Pakistani businesses could strengthen ties in promoting trade, investment, finance, commerce, industry and joint ventures between the two countries.

IIL’s Participation focused on promoting its range of products such as Steel Pipes, Plastic Pipes and Stainless Steel Pipes. IIL’s stall attracted considerable attention from visitors as well as the PABF Committee. Margaret Adamson (Australian High Commissioner) and Nicola Watkinson (Senior Trade & Investment Commissioner) paid special attention to the IIL stall and admired IIL’s products and marketing collateral.

IIL is one of the country’s most reputable corporate citizens and is included in a select list of blue chip companies listed on all the stock exchanges of the country. Having exported over 90,000 tons of product last year, IIL has a credible export pedigree and an ever-expanding footprint in 47 countries across 6 continents and has won several export awards at various highly prominent forums. IIL’s vision – “to be an internationally innovative entrepreneurial million tons steel processor by the year 2020” – leads us to continually add to our export territories and enhance our product range. A key milestone in this ambition is the establishment of IIL Australia Pty Limited (IILA), our wholly-owned subsidiary incorporated in Melbourne, Australia.

IIL Australia has been set up as a specialist company to represent and further IIL’s interests in the Asia Pacific region. IIL Australia has now completed the first year of its operations and we are highly encouraged by the success the company has achieved in getting quality IIL product, made to Australian Standards, delivered to Australian customers, backed up by a high level of service and timely deliveries.

In these endeavors, IIL Australia is continuously guided by the values espoused by IIL, which has helped the group flourish for 68 years and currently rolls over 1,000 kilometres of pipe per day, leading to an annual steel throughput of 500,000 tonnes and adding up to turnover of AU$ 530 million. IIL is also recognized as an International Associate member of the prestigious Galvanizers Association of Australia and is also certified for various international quality standards.

We have successfully introduced our brand, technical & operational capabilities and product range to a sizeable number of customers and have steadily built up a customer base and an encouraging order book based on repeat orders.

We look forward to our second year of our presence in Australia with optimism and a positive outlook.